The second part of simple budgeting is envelopes. Envelopes can be physically envelopes, a record book of finances kept in a ledger, or a combination of the two. The first envelopes need to be the most important such as bills. Each envelope or page on the ledger needs to be a different bill. In a ledger book, there are columns. The first column is where the due date for the bill goes. The second column is for detailed notes such as when you paid, how you paid, and how much you paid. The third column is where you put the total amount that is in that envelope. At the top of the page, you label which bill is being recorded here and the due date for it each month. The key concept for bills is that for each paycheck, half of what the bill totals goes in the envelope. When you first start out budgeting, this will be a little hard because you will have bills due immediately that you will have to put the full amount in and then half for the other bills that come after your next paycheck. After about a month, you should be stable and be able to see the benefits of budgeting begin to unfold.
Bill Page in Ledger